NDB internal fraud No impact on customers, Central Bank says

• Fraud amounts to Rs.13.2 billion
• NDB says customer balances remain unaffected
• Central Bank to continue monitoring developments

Amid fears among accountholders about internal fraud at the National Development Bank (NDB), the Central Bank said yesterday that no customer accounts or deposits had been affected by the fraud, as informed.   

The Central Bank said in a statement that NDB had informed that it had uncovered an internal fraud that could lead to a significant loss being incurred.   

The Central Bank has also been informed that no customer accounts or deposits have been affected by this fraud. The Central Bank has carried out a preliminary assessment of the financial impact on the basis of the information provided by NDB and is satisfied that, notwithstanding the reported loss, the prudential ratios relating to capital adequacy and liquidity continue to be at levels above the minimum regulatory requirements.   

The Central Bank continues to monitor the developments and will take necessary measures, if required. 

In the event of necessity, NDB will also be able to access temporary liquidity available from the Central Bank to banks under the provisions of the relevant laws and schemes already in place, according to the statement.   

The NDB said an internal fraud has been quantified at about 13.2 billion Sri Lankan rupees, sharply higher than earlier estimates.  In a disclosure to the Colombo Stock Exchange (CSE), it added that the fraud was limited to a specific area of operations and recovery efforts are underway with law enforcement support.   

NDB said customer balances remain unaffected and operations continue without disruption, while the bank remains well capitalised and liquid. 

NDB fraud exposes control gaps as losses climb to Rs.13.2bn